UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 15441 / August 13, 1997
SECURITIES AND EXCHANGE COMMISSION v. INTERACTIVE MEDICAL TECHNOLOGIES
LTD., WILLIAM E. SHELL, AND CLARK M. HOLCOMB,
97 Civ. 6027 (S.D.N.Y. August 13, 1997)
The Securities and Exchange Commission filed a Complaint today
charging Interactive Medical Technology, Inc. ("IMT"), Dr. William E.
Shell, the former president of IMT, and Clark M. Holcomb with violating the
registration provisions of the federal securities laws in connection with
their offering of approximately 2.5 million shares of IMT common stock to
the public during 1992 and 1993. Holcomb was also charged with acting as
an unregistered broker-dealer in connection with this public offering of
IMT stock.
IMT is a corporation with its principal offices in Santa Monica,
California. During the relevant time period, IMT was engaged in the
development of, among other things, dietary supplements. Shell, age 53, is
a founder of IMT and a medical doctor with a cardiology practice in Beverly
Hills, California. During the relevant time period, Shell served as IMT's
president, chief executive officer and chairman of the board. Holcomb, age
47, is a licensed real-estate agent who resides in Westlake Village,
California.
The Complaint alleges that from approximately April 1992 through at
least June 1993, IMT, Shell and Holcomb raised approximately $5 million
from the sale of IMT stock to approximately 300 investors. No registration
statement was in effect with respect to these shares of IMT stock. Both
IMT and Shell were previously enjoined from violating the registration
provisions, based upon IMT's prior offering of unregistered IMT securities.
See SEC v. Interactive Medical Technologies, Ltd., 92 Civ. 6409 (S.D.N.Y.
1992), Lit. Rel. No. 13354. The Complaint also alleges that during the
course of selling shares of IMT stock to the public, Holcomb acted as a
broker-dealer without registering as one, in violation of the broker-dealer
registration provisions.
The Complaint seeks the following relief: (1) permanent injunctions
from future violation of Section 5 of the Securities Act of 1933 (i.e., the
registration provisions) against IMT, Shell and Holcomb; (2) a permanent
injunction from future violation of Section 15(a) of the Securities
Exchange Act of 1934 (i.e., the broker-dealer registration provisions)
against Holcomb and (3) civil penalties against Shell and Holcomb.
Simultaneous with the filing of the Complaint, and without admitting
or denying the allegations therein, IMT and Holcomb consented to the entry
of Final Judgments of Permanent Injunction. No civil penalty was imposed
against Holcomb based upon his demonstrated inability to pay.
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